OPINION: Kogan shares are lower than in the dark days of the pandemic, while Scentre’s outgoing boss explains why health and education matter as much as shopping.
Ruslan Kogan came to Kogan.com’s full-year results call with his enthusiasm about the future of online shopping undiminished.Ruslan Kogan’s apology appears to have fallen on deaf ears.revenue fell 8 per cent, adjusted net profit went from $42.9 million in 2021 to a $2.
Kogan is clearly pulling plenty of levers to get back into the black. Costs have been slashed and staff numbers reduced. The cost of the Kogan loyalty program is about to be lifted by 34 per cent on an annual basis from $59 to $79. And inventory is back under control, falling from $228 million to $160 million as at June 30.
Operating profit rose 17.5 per cent to $540.5 million, cash flow jumped 17 per cent and funds from operation rose 18.3 per cent. In good news for the broader economy, customer visits are up 5.1 per cent year-to-date, tenant sales were up 7.1 per cent in the first half, and occupancy rose 30 basis points to 98.8 per cent. Of the 1579 lease deals signed in the half, 585 were new merchants, suggesting animal spirits are alive and well.
“We’re going to focus a lot more on wellness and health, as well as education. I think that those are the two key areas where people are looking to spend their money, and if we can participate in that we’re going to be in a really great position.”
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